“The ECB Bailout is Precious Metals Friendly”


Marc Faber was interviewed on Monday night echoing my sentiments exactly – the European Central Bank’s intention to buy government debt in Europe was very bullish for gold and further bearishness for paper money and government bonds. See here:


This also increases the likelihood in my opinion, of a Black Swan gold/silver event – where any day either soon or sometime in the future (I know it’s vague – but as Faber says, “you tell me how much money Mr Bernanke will print and I will tell you the future price of gold”) the price of gold simply takes off as more and more mainstream people see the massive Western economy money printing charade for what it is – a bailout of banks and an attempt the keep the musical chairs going – and decide to buy gold. Right now, most people do NOT own gold – even though people are quick to call it a bubble.

Just as a refresher, home ownership approached 70% and many owned second, third, fourth, even fifth homes with no income and no job – when 70% of people own gold and everyone is talking about it, we will consider it a bubble. But right now, not even close – the real bubble in the world government debt.

This reinforces the idea that precious metals would be a good addition to a saver’s portfolio.